What happened last week…
The stock market finished higher, rebounding from the previous down week. Performances were as follows: DJIA (0.29%), S&P 500 (1.32%), NASDAQ (2.38%). With more than 99% of S&P 500 companies reporting earnings results for Q1 2024, according to FactSet, the index saw a blended earnings growth rate of 5.9%, its highest year-over-year rate since Q1 2022 (9.4%), and blended revenue growth of 4.2%.
Eli Lilly (LLY) CFO Anat Ashkenazi will leave the company to join Alphabet (GOOG) in the same role, effective July 31. Ashkenazi was with Eli Lilly for 23 years and was CFO for the last three years. Alphabet’s previous CFO, Ruth Porat, had been in the role since 2015 but stepped down last year to become CIO.
Waste Management (WM) will purchase Stericycle (SRCL), a leader in medical waste disposal and secure information destruction, for $7.2 billion. The deal is expected to close by the end of this year.
The manufacturing PMI for May missed expectations (49.6) as it decreased to 48.7 from 49.2, making it back-to-back contractionary readings after the March figure snapped a streak of 16straight readings below 50. The non-manufacturing PMI for May beat expectations (50.8) as it increased to 53.8 from 49.4, which was the first contraction since December 2022. The current reading is the highest in nine months.
The ADP employment change missed expectations (175,000) as it decreased to 152,000 from the downwardly revised 188,000 (from 192,000). It is the lowest reading since January. The unemployment rate landed above expectations (3.9%) as it increased to 4.0% from 3.9%. Nonfarm payrolls beat expectations (190,000) as it increased to 272,000 from the downwardly revised 165,000 (from 175,000). Average hourly earnings month-over-month landed higher than expectations (0.3%) as it increased to 0.4% from 0.2%.
Happening this week…
The following companies report earnings this week: ORCL, AVGO, ADBE.
On Wednesday, the Federal Open Market Committee will make its latest interest rate decision. Rates are expected to remain at 5.25% to 5.50%, a range that has been unchanged for the past six meetings.
On Wednesday, the inflation rate year-over-year for May is expected to remain at 3.4%, which was the first monthly decline since January. The rate peaked at 9.1% in June 2022.
Thanks for reading!
- The Rockline Team
The opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.